India Investment, Stocks, Credit Card and Retail Forum

Personal Finance for Indian Investor => IPOs and Rights Issues => Topic started by: chetan on December 02, 2010, 08:39:00 AM

Title: MOIL Retail Allotment - Lottery
Post by: chetan on December 02, 2010, 08:39:00 AM
MOIL was oversubscribed by a whopping 32.86 times in Retail Individual category. The maximum application available under Retail was 31 lots of 17 shares each. Hence, even the Rs 2 Lakh applicant's fate will be decided by lottery.

Retail Individual Investors Pooled in a whopping Rs 14,000 Cr subscribing the complete issue by 12 times.

It would have been better as a Retail Investor to have BOUGHT NIFTY / SENSEX Which is up 4% on Rs 2 Lakh rather than earning 2.5% on the full application, going by the current GREY MARKET rates.

Update on 10-12-2010
We have obtained the Basis of Allotment of MOIL and it is as below. As said earlier, even the fate of 2 Lakh application has been decided by Lottery in the ration of 49:50. Every Retailer is allotted just 17 Shares depending on his application, the ratio is as below.

Shares Applied
17
34
51
68
85
102
119
136
153
170
187
204
221
238
255
272
289
306
323
340
357
374
391
408
425
442
459
476
493
510
527
/ Shares Allotment Ratio
1    31
3    47
2    21
6    47
6    37
6    31
7    31
8    31
9    31
10    31
6    17
13    34
13    31
15    34
9    19
1    2
19    35
19    33
20    33
7    11
2    3
23    33
8    11
29    38
26    33
43    53
28    33
51    58
10    11
31    33
49    50